Interest Only Jumbo Fixed Rate

The Fixed Rate Interest only jumbo loan is a fixed rate loan. The first 10 years is interest only and then for 20 years the loan is amoritized and fully paid off.

The intererst rate stays the same during the 30 years of the loan.

This is for Texas only.

Max LoanToValue & Total-LTV
Residence Type	Loan Amount	Max LTV	Max TLTV
Single Family Home or Duplex	$100,000 – $650,000	80%	80%
Single Family Home or Duplex	$650,001 – $1M	70%	80%
Single Family Home or Duplex	$1M – 1.5M	65%	80%
2nd Home	$100,000 – $650,000	75%	80%
2nd Home	$650,001 – $1M	65%	80%
Condominium	$100,000 – $650,000	75%	80%

Income required	– at least $150,000 annual income required
Cosigner	– is NOT permitted
Credit	– Loans over $900,000 require 720 credit score – 720 FICO required for 65.001% to 80% LTV/TLTV – 700 FICO required for 10%-65% LTV/TLTV
Bankruptcy	7 year waiting since BK cleared
Foreclosure	7 year waiting since BK cleared
Deed in Lieu of Foreclosure	7 year waiting since BK cleared
Short Sale or Short Pay	5-7 year waiting for short sale depending if any mortgage lates in last 12 months
Max Debt-to-Income Ratio	45% (debts / gross income) * * after expenses before taxes * use 30 year amoritization to qualify DTI
Reserves	24 months PITI or $250,000 (whichever is higher)
Seasoning	6 months required
Purchase contributions	max of 6% of lesser of sales price or appraised value
prepayment penalty	None

For more information call 281-259-0400

What is a JUMBO loan? In Texas any 1st loan over $417,000 is a jumbo loan.

What credit scores are required for a JUMBO loan? There is a variety of jumbo lenders and they all have different rules. There are very few that will accept credit scores below 700.
Credit score 680-699 0.25% higher rate (max of 80% LTV) LB
Credit score 680-699 0.5% higher rate (max of 75% LTV) LB
One lender requires no mortgage lates in last 24 months.

What is LTV? LTV is the loan to appraised value ratio. For example, if the property appraises for $1M and the loan is $700,000 then the LTV is 70%.

What credit scores are required for better rates on a JUMBO loan? A credit score of 760+ gets you the best rate with a 70% or lower LTV.

Can I get a 90% JUMBO loan? Yes but rates are slightly higher for this loan…
0.50% higher rate for 85.001-90% LTV
0.25% higher rate for 80.001-85% LTV

What RESERVES are needed for a JUMBO loan? Each lender varies from 3-12 months.

What is considered RESERVES? Reserves are the number of months of PITIH (Principle, Interest, Taxes, Insurance, HOA dues) you have in liquid accounts after you pay your “cash to close” amount.

How much lower is an ARM than a fixed JUMBO loan? There are 3/1 & 5/1 & 7/1 & 10/1 ARMs. The rate is approximately cheaper by …
10/1 ARM 0.75%
7/1 ARM 1.1%
5/1 ARM 1.5%

What is special about a JUMBO loan appraisal? When you get into the bigger loan amounts, the appraisal is looked at very closely. If there is any doubt that the property has 20%-30% equity usually the lender is going to require that the appraisal is solid. With loans over $750,000 be prepared to pay for two appraisals. If there is some question if the property will not appraise for the required amount, then we recommend that you let us submit the loan with multiple lenders. This will cost you more in processing and appraisal fees but it will keep the time to closing shorter and it could save you a lot of money in interest.

How long does a Jumbo loan take? The normal time is 3-5 weeks. Some things like a title problem, or a borrower that is slow with delivering needed documents, or a appraisal problem can delay the closing for another 1-4 weeks.

Can I get a JUMBO cashout loan? Yes you can get up to $250,000 cashout, but there are LTV limits, only on single family home, and total loan limits:
LU 65% LTV $1M loan limit
LU 60% LTV $1.5M loan limit
LU 55% LTV $2.0M loan limit
LU 45% LTV $2.5M loan limit

Can I get an non-arm length Jumbo loan? This is really tough as the lenders find it hard to trust the interested parties. At this time we have no lenders willing to do this loan.

Can a first time buyer get a JUMBO loan? Yes but the loan amount is limited to $1M.

What special income rules exist on JUMBO loans? Again various lenders have different rules with jumbo loans.
LU 45% DTI on fixed Jumbo
LU 40% DTI on ARM Jumbo & use 7.0% to calculate

How is the credit score calculated? Each borrower usually has 3 credit scores (from Transunion, Equifax, Experian). Take the middle score from each borrower. Use the middle score from the borrower with the lowest credit score.

Can I average my credit scores from each agency? No underwriters do not allow averaging credit scores.

Can I get a long term lock? You can get a 15, 30, 45, or 60 day lock. Locks can be extended 7, 15, 21 or 30 days.

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